Early Stage Venture Fund

ESVFIII2

Dr Vivian Balakrishnan, Minister for Foreign Affairs and Minister-in-Charge of the Smart Nation Initiative, announced at Techventure 2015 that the Singapore government will allocate S$40 million to encourage Large Local Enterprises (LLEs) firms to invest in early-stage, technology companies based in Singapore. This will be carried out through a third instalment of the ESVF scheme.

The current call for proposal for corporate venture funds set up by LLEs is open. It aims to encourage LLEs to adopt a corporate venture strategy to access new technologies and catalyse the growth of clusters of innovative high-tech companies, as part of their corporate strategy. At the same time, start-ups can leverage corporations for funding, mentorship, resources and connection to their network of customers.

Click here for more information on the call for proposal.

The Early Stage Venture Fund (ESVF) is an initiative under the National Framework for Innovation and Enterprise (NFIE)[1]. ESVF seeds funds with selected venture capital firms to invest in Singapore-based early-stage technology start-ups.

Under this initiative, the National Research Foundation (NRF) Singapore invests S$10 million on a 1:1 matching basis, to seed venture capital (VC) funds that invest in Singapore-based early stage high-tech companies. As an incentive, the VCs have the option to buy out NRF’s share of the fund within five years by returning NRF’s capital with interest.

Background

In July 2008, the NRF launched the Early Stage Venture Funding Scheme (ESVF) to finance VC funds to provide early stage investment for Singapore-based technology start-ups.

The first batch of five VC funds were:

With a vibrant technology start-up ecosystem taking shape and Singapore seeing encouraging results from its investments, a challenge for start-ups is limited early stage financing in Singapore and the region. To address this funding gap, Deputy Prime Minister (DPM) Teo Chee Hean, Chairman of the National Research Foundation, Prime Minister’s Office, Singapore, announced on 25 Sep 2013 at Techventure 2013 that the Singapore government would inject S$50 million to energise the early stage investment ecosystem.[2]

In April 2014, NRF announced the second batch of VC funds under the ESVF scheme.

The six VC funds are:

Success Stories

NRF’s investments have been encouraging. The following are examples of ESVF investments that have received follow-up funding or acquired by other companies.

HungryGoWhere

Restaurant review portal HungryGoWhere is the leading food portal in Singapore, with additional online presence in Hong Kong, Malaysia, Vietnam, Cambodia and Australia. In 2012, HungryGoWhere.com was fully acquired by Singapore Telecommunications Limited (SingTel) for a sum of S$12 million.

Brandtology

Brandtology’s Online Business Intelligence services enable brands to manage and extract invaluable insights from consumers’ conversations. Launched in 2008 and headquartered in Singapore, Brandtology’s multilingual service covers more than 15 languages and processes over 250 million online conversations per month. Brandtology is a subsidiary of iSentia.

YFind Technologies Pte Ltd

YFind is a Singapore-based indoor positioning company which has developed an indoor location technology called YFind Positioning System based on existing WIFI infrastructure and smartphone handsets to enable location in intelligent buildings and cities. This technology enables users to search a location indoors or in dense urban environments, within three metres’ accuracy. YFind Technologies Pte Ltd was acquired in July 2013 by Ruckus Wireless, a Silicon Valley based supplier of advanced wireless systems.

JustCommodity

JustCommodity is a Singapore-based commodity trading and risk management software solutions provider for the soft commodity sector, servicing some of the largest trading firms worldwide, including Forbes Global 2000 and Fortune 500 companies. It has developed comprehensive real-time reporting tools to help trading firms manage, track and trade their products.
  


[1] The National Framework for Innovation and Enterprise (NFIE) is a national programme to grow innovation and entrepreneurship in Singapore. The NFIE is administered by the National Research Foundation (NRF), Prime Minister’s Office, Singapore. 

[2] This is in addition to an earlier injection of $50 million in 2008 to co-finance the establishment of five early stage venture funds in Singapore.

 
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